Cravatex Brands rallies ~20% as Metro Brands acquires 100% stake

20 Oct 2022 , 09:47 AM

Metro Brands Limited, India’s top footwear retail chain, has inked a share purchase agreement to acquire 100% of Cravatex Brands Ltd., allowing the company to extend its footprint in the sports and athleisure industry in India.

Cravatex Brands is retail, brand licensing, distribution, and sourcing firm that owns and represents the Italian sportswear brand FILA, as well as owning and representing other worldwide brands.

The acquisition is contingent on both parties meeting the closing conditions. As part of this deal, existing Cravatex Brands Limited investor Paragon Partners will sell its entire stake.

“This purchase aligns with Metro Brands’ strategic aim of using our expertise in brick-and-mortar and e-commerce retail while meeting the expanding consumer demand in the sports and athleisure area. With this acquisition, we hope to elevate the sportswear environment in India,” stated Nissan Joseph, CEO of Metro Brands Ltd.

Metro Brands will get exclusive rights to Proline and the sale and distribution rights to FILA across formats in India, including Exclusive Brand Stores, Multi Brand Stores, Airport Stores, Distribution, Online Marketplaces, and Webstores, as a result of this transaction.

At around 9.56 AM, Cravatex Brands was trading at Rs455.60 up by 19.99% from its previous closing of Rs379.70 on the BSE. The scrip opened at Rs455.60 and touched intraday high and low of Rs455.60 and Rs440 respectively.
 
On the other hand, Metro Brands was trading down by 1.21% at Rs885.15, against previous closing of Rs896 on the BSE.